If you are sending your kids to either daycare of summer camp, you may qualify for the tax credit for child and dependent care. The IRS had brought out a tip talking about qualifications for this credit – see the link below for the tip sheet from them: http://content.govdelivery.com/accounts/USIRS/bulletins/bd35e8?reqfrom=share Just remember that you had to file married joint or head of household to qualify for the credit (you may also qualify if you and your spouse lived apart .) Remember the max costs is $3,000 for one child or $6,000 for two or more and you have to get the provider’s federal idenitification or social security number as well as address and (sometimes) their telephone number. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: Tips for Safeguarding Tax Records
Here are some more tips for safeguarding your tax records (whether you keep the recommended minimum five years worth or farther back.) See this article in AccountingToday by Jeff Stimpson for more details: http://www.accountingtoday.com/news/irs_watch/tips-for-safeguarding-tax-records-70916-1.html A lot of tax professionals also recommend that you keep many more tax return copies than the records (I always recommend you keep at least 10 years of your actual returns – with pdfs and the cloud this is a lot easier than it used to be.) Since most tax professionals keep five to seven years of the returns they prepare (no set amount here, usually company policy) having a few extra years doesn’t hurt if you need them for some form or document. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
CPA Tax Musings: Health Savings Accounts Can Double as Shadow IRAs
If you have set up a Health Savings Account with a high deductible insurance plan, after you turn 65 the HSA can actually take on the characteristics of a traditional IRA. You can withdraw money from the plan to pay for anything and the withdrawal is taxable, but there are no longer any penalties for using the money for non-medical expenses. See this article in the Wall Street Journal by Peter S. Green for more details: http://online.wsj.com/articles/health-savings-accounts-can-double-as-shadow-iras-1401481345 In this situation it would be wise to treat the HSA as more of a supplemental IRA – there may be more advantages to continue to pay for medical expenses tax free than pay tax on the distributions. You need to look at your situation and see what works best for you. Also remember that your penalty free start time goes from 59 1/2 to 65 with the HSA. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa